Fundatmentals of Macroeconomics Paper
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In a market place economy such as the United States, there are terms that make up the fundamentals of Macroeconomics, such as Gross domestic product (GDP), Real GDP, Nominal GDP, Unemployment rate, Inflation rate, and interest rate. The Gross domestic product is the dollar value of all finished goods and services that is produced by citizens of any country annually. The real GDP is An inflation-adjusted measure that reflects the value of all goods and services produced annually, expressed in base-year prices. Also called the constant dollar GDP, inflation corrected GDP or constant price. The nominal GDP is a gross domestic product (GDP) figure that has not been adjusted for inflation. The Unemployment rate is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. Keynesian economics emphasizes the cyclical nature of unemployment and recommends government interventions in the economy that it claims will reduce unemployment during recessions. An interest rate is the rate at which interest is paid by a borrower (debtor) for the use of money that they borrow from a lender (creditor).
The United States Economy can be divided into three parts, businesses, households, and government. The Households supply labor and other factors of production to business and are paid by business for doing so. The market where the interaction takes place is called a factor market. Businesses produce goods and services and sell them to household and government. The market where this interaction takes place is called the good market. Each of these sector are interconnected, the U.S. economy is interconnected with the world economy. Both household and business are interconnected with the world economy. Government taxes business and households. It buys good and services from business and buys labor from households. Uses the tax revenue, it provide services for roads, education to both business households and give some of its tax revenue directly back to individuals. Business in the United States
Purchasing of groceries Buying groceries affects the government in many ways! One way is that the government determines the taxes on groceries as well as what items can be sold when. For example, the government determines in some states when alcohol cannot be sold. – See more at: